in reply to rtd, no matter what, borrower is at fault.... job markets changes!!! notthing is for sure!!! why buy a house w/big mortgage without planning? we make over $150k/year, no credit card debt, just student loans. yet we do not even want to get into a house w/a mtg more than $375k as we want to be able to afford it easily even if 1 of us is laid off, or due to illness that we have to leave our job!!! we look at people who make $500k/year, and having mtg of $500k or more than to worry if they will have their job/income every month!!! why? why put ourselves in that situation!!! bad thing happens to everyone!!!! we do, however, have to be responsible for our own action. no one forces us to get into a bigger, better house with higher mtg, no one!!!!!!!!!

What I am unable to grasp is the Presidential candidates using this "crisis" as part of their platform.  We do not, in my opinion, need to create funded programs to help bail-out people who have had a forclosure or filed bankruptcy.  I believe that everyone is made aware of ARM or Balloon Rate Mortgage terms.  They choose those options so they can afford payments for a little while, with the plan to worry about those increases when they come due.  Meanwhile, many are buying or placing items on credit for their new house as well.  Then maybe all of a sudden... children.  I hope everyone realizes that you are responsible for your financial situation.  Everyone has financial difficulties at one time or another.  Take responsibility and do everything you can to correct your situation.  Hand-outs for irresponsibility is not what I will be voting for - ever.

In answer to Doberdog's question.  If you were forclosed on it would be very hard to get financing on a large purchase. I tmay take 3 to 10 years to get another mortgage.

Jim Rossman

Mtg. Broker, MN

When is anyone going to wake up and fault the major banks for contributing to this mess as well. As a mortgage loan consultant the majority of our refinances are for debt consolidation. Anyone can apply for a credit card, state the income, and no verification is ever made that they even have a job. Credit card issuers do not have to calculate an applicants debt-to-income ratios  to see if the applicant even has enough disposable income to make the payments. In this society people just buy, buy, buy, then freak when they receive the credit card statements, get behind on their payments, blame everyone else, ruin their credit, and then are forced to refinance at higher rates if they have any equity in their home to pay off their creditors, otherwise they file Bankruptcy. In the purchase market here on the Gulf Coast, some realtors got what I call investors to do cash sales of at least 3 or more properties to create comps to support the values of new purchases of condos and after Hurricane Katrina, They justified that demand was greater then supply and collaberated with certain appraisers so that the cash sales of these condos and SFR purchases was way overvalued causing our market to inflate home values astronomically. Now two and  a half years later, those that purchased are now in a negative equity situation and can't even sell these properties for what they paid because they were never worth that to begin with. It's a little late for the government to step in now, where were they 2-3 years ago when all these major banks were doing what I call "stupid lending? Borrowers could just write on a piece of paper that they were self-employed with no verification and companies such as Argent owned by Ameriquest would give them a loan, stupid lending. There has never been regulation of lending practices by any government entity other than FHA and VA and those had the highest default rates until now. Now all borrowers will have to pay regardless if they have good credit or not.

I agree with sarah.  People are buying homes out of their means.  in the 40's a house was 900 sqft today a house is at least twice that but most people want 3 times that.  alot of other things have changed since then too.  most families have 2 working parents in them now, and they still can't afford a 2700 sqft house.  i know i can't.  plus people have way too much in debt.  there are plenty of people to blame for this but first and foremost has to be the purchaser, 2nd the dumbhead at the bank who gave them the money, 3rd society in general for always wanting more more more more.  i get sick at watching tv and being blinded by all this crap i need to buy.  sad thing is, companies with billions of dollars know that people will blow their money on crap.  the super sad thing is if we do wise up and stop buying crap we don't need then there will be a lot of people out of a job because corporate america watches out for #1.  

When I bought my first house in 1987 you had to put 25% down.  Once you allowed people to buy with 5% down everyone had to be a homeowner and  that started it. What made the price of houses go up is now making it go down. In my area (Long Island, NY)  they sell 20 houses at auction every week and the bank takes back 19 out of the 20. Where will the buyers for all these bank owned houses come from? Where will they get the substantial money to put down? This mess will take years till it starts to turn around.

Artificially high priced homes, artificially inflating price per sqft tax rates on all homes, built by lots of illegal labor, for those that could not afford it in the first place.  Now try to buy a new/used home. Have good credit/income, current house considered illiquid for financial transaction, need 5% to 10% down. Considering a career change may cost even more. Does no good that I kept my finances in order all these years cause I'm being treated like some newcomer to the housing market. Time to put the money back under the mattress at least it won't get stolen by the banks. And look at those thieving credit card companies. How can the gov allow the usuary laws to continue like they are. There is more to come with plain sight stealing in the cards , pawns ,and title type companies. That's where people are going to turn to survive and the wolves are waiting.    

I have been a realtor for 16 years and I agree with public opinon that this mortgage mess was caused by greed. 1)The National Association of Realtors (and many of their members) who always spin the real estate market in favor of Realtors without regard to the public whom they proport to protect and serve, 2)mortgage lenders who were giving money to people who wouldn't be allowed used car loans and in many cases helping borrowers lie to get those loans knowing full well that many of them would result in default, and 3) THE BORROWERS who lied and cheated in many cases to get a home they knew that they coundn't afford. The borrowers who found it easy to play stupid and blame everyone else for their failure to pay for something they knew they couldn't afford and now want a bailout at our expense.

3 years ago when we bought our 1st home putting down  our 120k lifetime saving for a 570k home. looking forward to get little equity for my kids education in the future but after those foreclose and short sale in the niegborhood. my house value is lesser that what i owed and the money that i put down is gone. In some reason people leaving thier home not just bec. they cannot afford the payment its also they know they continously losing they money bec. of the decline of the property values. I wish bank can offer lower rate lower that 4% at our govt can do something lowering the property taxes.Most people paying property tax base on the how much they bought thier home even thought now the value of thier home is 150k lesser. adjust the property taxes its will help if not you will continuesly seeing people losing thier home.

With over 40 years of Real Estate appraisal experience the writing has been on the walls for several years. I n my area Appraisers , mortgage brokers and Lawyers have already gone to jail. & we are just in the beginning of this mess. I can honestly say that that if you could not make value for certain lenders that just went appraiser shopping to get the value needed. I personally know an Appraiser who was called by the Army Reserve & was sent to Europe & had his office e mail Appraisals to him & he signed them. He is now in the Brig. This problem will get worse before it will get better than it will start all over again.